Thursday, February 24, 2011


  • Roxy posted a solid set of results and a S$0.01 dividend (2.2+%)- AGM 31 Mar 2011
    • 33% rise in revenue and 53% rise in profits 
    • Profit is S$31m from property devt and S$12m from hotel, property investments and S$10m from revaluations of property. Ex revaluation, profit rose 19% 
    • Developments averages 90+% sold
    • cash at S$157m and total debt of S$357m (taking on debt to finance the new developments which have seen very strong take ups)
    • Significant improvement in AOR and ARR for hotels segment
    • Most importantly, the hotel property is now valued at S$ 326.6m vs. 232.4m at Dec 2009.This is carried on the books for S$70.4m 
    • NAV on books is S$169.8m or S$0.266 per share
    • Hotel revalued alone will bump it to $426m or S$0.669 per share (excluding all misc revaluations from development property and the Kovan centre).
  • AEI posted a 50% dip in FY 2010 results and a S$0.01 dividend (6.6+%)  - AGM April 2011
    • Remain focused on electronics and precision engineering, revenue (bulk of total group sales) declined 27%
      • China auto part production to start (final stages)
    • Construction faced cheaper imports and a stronger dollar (expected), revenue declined 50% 
    • Cash decline mainly S$4.6m in PPE, S$1.7m share buybacks. 
    • Total cash and investments = S$26.9m  while current market cap is S$39m (approx 68%)
    • Probably need to head down for AGM to find out more about expansion plans
  • Koon is slated to release FY2010 results today - (To be updated)
    • Expect to see stronger income from the precast as well as construction
    • Probably a lower cash amount due to capex on their Aussie power plant
  • 1 March 2011 Updates and a S$0.01 dividend (3.5+%)
    • Revenue at S$74m, fell 41.8% in line with revenue subtracted for the marine business (Sold off) which made a loss of S$0.122m on S$4.5m revenue 
    • Operating profit up 34% to S$13.5m and NPAT up 20% to S$12.7m from S$10m a year ago
    • Remember my estimates of consistent S$5-8m / year operating profit? LINK HERE
      • Cash is at S$22m, in line with what I put out to be less than S$30m [Including acquisition of associates (Tesla) and with a capex of S$6m, it works out to be S$22m]
      • The firm has outperformed my estimates for this year as there was a gain of S$1.5m from buying Econ at below book value and gain of S$4.1m from Tesla and disposal of equipment and machinery. Ex that, NPAT will lie in the range of S$5-8m as stated.
      • With concerns earnings may not be recurring, order book is now S$60m (excluding the Vietnam project) and precast order book of S$31m. Precast is loss making due to start up costs involved as mentioned earlier and expected to contribute meaningfully for 2011
  • Upside remains favorable and in the worse case scenario of no vietnam project + declining construction revenues, earnings will converge to the S$5-8m / year level as stated, especially with higher depreciation from the new equipment and machinery acquired in 2010. So that means even in the worse case, there is still upside of approx 20-25%. Bullish upside scenario remains likely



Nice well done info.

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